No Budget, No Problem: Why Big Brands Should Be Scared of AI

 

When you think of the world’s biggest brands, there are several reasons that could be the key driving force of their success. For Apple, it’s the unrivalled innovation, Nike would point to their history of storytelling, while McDonald’s ability to offer a consistent product at a low price is at the heart of their success. But once brands do reach the size of Apple, Nike, and McDonald’s, budget plays a key role in helping them to stay there. Consequently, making it harder and harder for new startups to grab a slice of the market.

That was until now. As we head into the era of AI, brands of all shapes and sizes stand to benefit. But perhaps it’s smaller brands that will reap the biggest rewards from AI, and could AI pose the biggest ever threat to legacy brands?

In this article, we’re going to show you why small businesses must harness the power of AI if they want to disrupt the status quo within their industry.

AI Killed the Budget Advantage

Are big brands better, or are they just louder? Mammoth marketing budgets allow world-renowned brands to bombard consumers from every angle. Where smaller brands must carefully choose the most effective marketing channel, legacy brands can afford to cover all angles. 

The end result is mass brand awareness. How many people instinctively head to McDonald’s without even thinking when they realise they’ve left their lunch at home? That’s the power of brand, a power that has been built up by the golden arches being visible wherever your attention is.

AI poses the potential to hamper this advantage, if not eliminate it. Human brainpower has always been the tool behind the world’s most famous campaigns, a tool that bigger brands possess more of due to their financial muscles. But in the shape of AI, small brands now have a new weapon they can bring to the war, a weapon that can compete with human idea generation, produce content in an instant and possesses infinitely more creativity than any Harvard grad.

The budget was evident in many forms, but ultimately it all equated to scale. More money meant bigger brands could work with the world’s best agencies, attract the top talent, harness more data and produce more material. Smaller companies couldn’t compete on either quality or quantity.

AI-shaped tools dramatically impact the landscape. While agencies may still be required, there could certainly be less reliance on them. Data will be readily available for everyone, not just those with bigger budgets, and the top creative talent could be a piece of software.

How AI Levels the Playing Field

While much of the talk around AI focuses on potential, it’s important to know that AI is very much happening already. There is a whole suite of AI tools available today, including AI video makers and editors. 

From an idea perspective, tools like ChatGPT and Gemini are capable of being the brains behind these ideas, whether that be through a strategy or a script. In short, a million-dollar ad agency just became less valuable now that every brand has one at its fingertips!

The Rise of the Microbrand 

While not always true, smaller brands often offer a superior product compared to bigger brands. You only have to look as far as the jewellery industry to see this; brands like Graziela Gems offer a high-quality product in terms of craftsmanship, but without the budget of Cartier, you may not be aware of this.

AI now transforms small businesses into big brands, at least in terms of appearance. Due to the level playing field, smaller companies can spread their message far and wide with creative that would rival any agency.

Final Thoughts

Don’t underestimate the impact that AI will have on the marketing world. For the first time in history, we’re about to enter a marketing landscape where the winners won’t be determined by budgets.

Instead, factors like speed, message and targeting will grow in importance. In a world where it’s easy to look like a big brand, the brands with the biggest imagination could be the ones who win.